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Subject Bernanke's Biggest Lie - A common misconception

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Original Message Ben Bernanke claims that if the debt limit is not increased by 2nd August, the Stcok Market will plummet and economic catastrophe will follow.

THIS IS UNTRUE.

It is fundamental to the Stock Market that they "buy on the rumour and sell on the fact",

If agreement is not reached quickly then the following will occur.

In about a week's time, a run on bonds will follow.

US debt might be downgraded.

The Stock Market will panic well BEFORE the end of July.

Banks will become illiquid.

The initial crash will strip out all the remaining cash that the US has.

The USA will, therefore, run out of cash well before 2nd August.

As there will be no cash left, bank bailouts will be impossible.

So there will be a comprehensive run on the banks which will close or shut forever.

Pension funds and Insurance companies will follow the banks down.

...And all WELL BEFORE the end of Juky 2011, NOT AFTER as Bernanke claims.

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